Energy News

AS BANGLADESH marks the International Day of Clean Energy this January, the observance arrives at a moment of unusual historical weight. In November this year, the country is set to graduate from the United Nations’ list of Least Developed Countries. This transition is widely framed as a marker of success — a recognition of economic growth, improved infrastructure and rising industrial capacity. Yet the symbolism of graduation sits uneasily beside a less comfortable reality: Bangladesh is entering its post-LDC era just as the global energy system undergoes its most disruptive transformation in a century.

The committee, however, has stopped short of recommending immediate action, leaving the final decision to the next elected government.

The National Review Committee examining power contracts signed under the 2010 special act has recommended that Bangladesh either renegotiate the coal pricing formula with Adani Power Limited (APL) or move to cancel the agreement if the Indian company refuses to revisit the terms.

On January 7, 2026, the Interim Government's Advisor for the Ministry of Power, Energy and Mineral Resources Muhammad Fauzul Kabir Khan submitted to the Chief Adviser Prof. Muhammad Yunus a new 25-year power and energy sector master plan to be implemented during 2026-2050. As reported, the master plan would be implemented in three phases: 2026-2030, 2030-2040 and 2040-2050.The Master Plan projected country's peak electricity demand of 59,000 megawatts by 2050 (current electricity demand considered to be 16,700 MW).

The power sector’s high reserve margin, capacity payment obligations, and reliance on imported fossil fuels have weakened the Bangladesh Power Development Board’s (BPDB) financial strength. In a bid to urgently address its distress, the interim government, after assuming office in August 2024, undertook some measures to reduce costs. Yet, the power sector registered a record revenue shortfall in FY2024-25, calling for long-term efforts to deliver results. With the general election scheduled for February 12, 2026, the next government will be well-placed to design and implement long-term reforms to steer the power sector towards sustainability, while ensuring that the country’s economic growth trajectory remains intact.

In a coastal village in Cox’s Bazar, steel towers now rise where fishermen once cast their nets. The wind that used to whip across the salt-stung plains without notice is now captured, spinning giant blades that generate electricity and promise a cleaner future. Bangladesh, long reliant on fossil fuels and foreign energy imports, is finally beginning to turn the tide.

Bangladesh’s power sector has reached a state of financial distress that now poses a significant fiscal risk to the national budget, according to a recent technical assessment by the International Monetary Fund (IMF).

The assessment, submitted recently to the Power Division but not yet made public, urges immediate tariff reforms, stronger regulatory oversight, and targeted protections for vulnerable households to prevent deeper structural damage.

At a roundtable titled “Redirecting Finance from LNG to Renewable Energy in Bangladesh,” experts warned that the country’s clean energy transition is stalled not by technology or lack of interest, but by weak governance and policy inconsistencies

Energy sovereignty is the process of ensuring a country's own energy security and independence, where dependence on foreign fossil fuels is reduced and the use of local renewable energy is increased. Currently, Bangladesh's energy mix is generated from about 97% fossil fuels, and the amount of energy generated from renewable energy is only 3%. However, the government has set a target of generating 40% of electricity from renewable energy by 2041. The country has successfully installed 4.1 million units under the Solar Home System programme, which proves the potential and capacity of renewable energy in Bangladesh.

The combination of soaring natural gas demand and plummeting domestic production has pushed the Bangladesh government to diversify its energy sources. In the past, various plans, including the Integrated Energy and Power Master Plan 2023, have attempted to address this concern, but they have driven a shift towards imported liquefied natural gas (LNG) instead. As a result, the LNG pathway, pursued as a fuel diversification strategy without enough investment in domestic gas exploration, has become an economic burden for the country.

The transition to clean energy has emerged as an urgent priority for Bangladesh, yet it is disheartening to learn of rampant corruption and exploitation within the sector. A recent Transparency International Bangladesh (TIB) study has revealed that around TK 250 crore has been siphoned off through corruption in land acquisition and compensation in five solar projects, with irregularities spanning every stage from approval to completion. The study also highlights a significant gap between official cost estimates and actual spending.

The Matarbari Ultra Super Critical Coal Power Project, with a cost of Tk56,693.90 crore, began implementation in 2014, with Tk47,945 crore being financed through a loan from Jica.

The Matarbari Ultra Super Critical Coal-Fired Power Project continues to struggle with serious technical and operational issues that have significantly reduced power generation and triggered mounting financial losses, according to a recent review meeting at the Economic Relations Division (ERD).

In recent years, Bangladesh has made notable progress in renewable energy production. The Sustainable and Renewable Energy Development Authority (SREDA) estimates that five percent of the country's total generation capacity now comes from renewables. Solar energy is the primary contributor, accounting for 82 percent of renewable generation. Rooftop solar is steadily expanding, with 4,267 net-metered systems installed nationwide to date. Large-scale solar parks are also playing an increasingly important role.

According to the anti-corruption watchdog, Bangladesh’s renewable energy ambitions remain stalled as policymakers have yet to place clean energy at the centre of national planning.

Transparency International Bangladesh (TIB) has expressed deep concern over the interim government's decision to cancel 31 unsolicited renewable energy projects involving an estimated investment of around $6 billion, warning that the move could undermine investor confidence at a critical time for Bangladesh's clean energy transition.

AI is rapidly transforming global energy systems, from smart grids to virtual power plants. Bangladesh, however, is only beginning to explore its potential, risking a widening gap

At COP30, the world's biggest names in energy and technology spoke like people already living in the future. For them, AI in power systems is no longer a distant idea. It is already running forecasts, balancing grids, operating virtual power plants, and helping companies achieve 24/7 clean electricity.

State-run Power Grid has undisclosed liabilities which, if taken into account, would exceed the value of its assets and impair its ability to repay.

The company's auditors flagged the liabilities in qualified opinions attached to the FY25 financial statements. To get independent judgements about the financial status of Power Grid, The FE spoke with several auditors and experts, who said the company, already in the red, would be unable to meet its repayment obligations in its current financial position.